A new Deltek report says that President Barack Obama’s proposed fiscal 2016 budget reflects the administration’s efforts to increase spending on priority programs across the government.
The company has estimated that overall contractor-addressable spending will grow 2 percent to $660 billion in FY 2016 if Congress approves the budget plan, Deltek said Wednesday.
Federal spending on the aerospace and defense sector is forecast to reach approximately $137.1 billion under Obama’s latest budget, a 12 percent increase from an estimated $122.4 billion FY 2015 A&D spending.
The plan would modestly increase U.S. government’s investment in professional services to $67.1 billion and in operations and maintenance services to $93.5 billion, the report states.
Deltek also projects contractor-addressable spending on information technology products and services to jump from $101.5 billion in FY 2014 to $104.5 billion in FY 2016.
Non-A&D equipment spending could hit approximately $49.4 billion over the next fiscal year, up from $30.7 billion last fiscal year, if the budget is passed by Congress.
John Slye, a Deltek analyst, said he believes contractors who can work with agencies to help them maximize their budget will gain a “market advantage.”